QW If the stock market collapsed today, how would your family be affected?
What was the Great Depression? The worst economic crisis of the century Over 13 million people unemployed “Dust bowl” as a result of drought Farmers lost crops Many lost their homes
What caused the Great Depression? Unequal distribution of wealth Stock market crash of 1929
Unequal Distribution of Wealth Limited middle class Supply not equal to demand Credit cards created false demand
THE STOCK MARKET By 1929, many Americans were invested in the Stock Market The Stock Market had become the most visible symbol of a prosperous American economy
THE 1929 CRASH On October 29, now known as Black Tuesday, the bottom fell out 16.4 million shares were sold that day – prices plummeted People who had bought on margin (credit) were stuck with huge debts
Loss of homes “Hoovervilles” Here were all these people living in old rusted-out car bodies.... One family... [was] living in a piano box. This wasn't just a little section, this was maybe 10 miles wide and 10 miles long. People living in whatever they could junk together...."
Dustbowls A traveler noticed a nice new hat by the side of the road, and he stopped to pick it up. Under the hat was a man, buried up to his neck in the dust! As he dug the poor fellow out, the traveler asked if he wanted a ride into town. "No, I'll get there myself," the man replied, "I'm on a horse." (Excerpt from THE DUST BOWL by Tricia Andryszewski, p. 33.)